Flutter faces £640m short bets as hedge funds turn bearish

Growing bearish bets highlight divide over Flutter's future growth.

Hedge funds have filed a total of GBP640 million ($861 million) of short positions against Irish-American gambling company Flutter Entertainment, underscoring growing investor concerns over the company’s outlook.

Recent regulatory disclosures on the London Stock Exchange show a number of prominent hedge funds holding bearish positions in Flutter, including D. E. Shaw, Two Sigma Investments, AQR Capital Management, Marshall Wace, and Balyasny Asset Management.

The combined position represents one of the largest disclosed short bets against a European-listed gambling stock, representing around 5% of Flutter’s issued share capital.

The growing short interest comes amid a difficult period for sports betting and online gaming companies. Flutter's shares have come under pressure this year as investors reassess growth expectations for the sector, while concerns have emerged over increasing competition from prediction markets and evolving regulatory frameworks across key jurisdictions.

Despite the negative sentiment, Flutter remains a dominant force in global online betting through brands including FanDuel, Paddy Power and Betfair. The company maintains a leading position in the U.S. sports betting market, where FanDuel continues to command a significant share of wagering activity.

However, some investors are questioning whether the industry's rapid post-pandemic growth can be sustained. Rising customer acquisition costs, intensifying competition and the emergence of alternative wagering products have prompted a more cautious outlook among market participants.

The sizeable short position highlights a widening divide between bullish investors who view Flutter as a long-term leader in online betting and hedge funds betting that regulatory pressures and slowing growth could weigh on the company's valuation in the months ahead.

Shares in Flutter Entertainment closed at GBP104.31 on Monday, up 7.56% from end-of-day trading on Friday. The stock has fallen 51.79% year-to-date.

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